FTSE Spread Betting Market Surges as Fed Holds Rates Until 2014
The bulls are firmly in command once more this morning, as the ‘Bernanke bounce’ sends the market up around 50 points in mid-morning trade.
The knowledge that the Fed has put policy changes on hold until the dim and distant future of 2014 has tempted investors to come out and play once again.
The FTSE has put on yet more gains following a strong performance on Wall Street last night after the Fed announcement and press conference.
Once again Uncle Ben has come to the rescue, and equities, commodities and riskier currencies are all up as traders take heart from the belief that the Fed stands ready to help out should things turn ugly.
In addition to this, mining firms are sailing ahead today, after Anglo American issued upbeat production numbers, and gains in excess of 3% are quite commonplace across the sector.
Star performer among the heavyweight miners is Vedanta Resources, up 6%.
Dow futures have turned positive as the morning has progressed, indicating that yet more gains by Wall Street will be the order of the day this afternoon, and the Dow is expected to start around 40 points higher.
There is plenty of American economic data to chew over today, including durable goods, jobless claims and new home sales.
If this data can keep showing improvement, then the bulls really will have the upper hand.
Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
Financial Market Comments from Chris Beauchamp, Market Analyst, IG Index.
The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.
Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.
0 comments
There are currently no comments. Please start by filling out the form below.
You must log in to post a comment.